Decree of the General Administration of Customs of the People’s Republic of China

No. 181

The Provisions of the Customs of the People’s Republic of China on Administration of Origin for Preferential Treatment of Imported and Exported Commodities, which was passed at the executive meeting of the General Administration of Customs (GAC) on Dec. 25, 2008, is hereby promulgated, which shall enter into force on March 1, 2009.

Minister Sheng Guangzu

Jan. 8, 2009

Provisions of the Customs of the People’s Republic of China on Administration of Origin for Preferential Treatment of Imported and Exported Commodities

Article 1 For the purpose of correctly determining the origin of imported and exported commodities under preferential trade agreements, and regulating the administration of the Customs on the origins of imported and exported commodities under preferential trade agreements, these Provisions is formulated according to the Customs Law of the People’s Republic of China (hereinafter referred to as the Customs Law), the Regulations of the People’s Republic of China on Import and Export Duties and the Rules of the People’s Republic of China on Origin of Imported and Exported Commodities.

Article 2 These Provisions applies to the administration of customs on origins of imported and exported commodities under preferential trade agreements.

Article 3 Where any commodity imported from the member states or regions of preferential trade agreements (hereinafter referred to as the member states or regions) by direct shipment falls in any of the following circumstances, its origin shall be the member state or region and it is subject to the agreed tariff or preferential tariff stipulated in corresponding preferential trade agreements prescribed in the Customs Tariff of Import and Export of the People’s Republic of China (hereinafter referred to as the agreed or preferential tariff):

(1)    Where the commodity is completely obtained or produced in the member state or region; or

(2)    Where though the commodity is not completely obtained or produced in member state or region, the provisions of Article 5 and 6 herein are satisfied.

Article 4 The commodity that is “completely obtained or produced in the member state or region” as mentioned in Paragraph 1 of Article 3 refers to:

(1)    The plant products harvested, picked up or collected in the territory of the member state or region;

(2)    The live animals breed and raised in the territory of the member state or region;

(3)    The minimal products exploited and obtained in the territory or the territorial sea of the member state or region; or

(4)    Other commodities that meet the standards for complete obtaining under the corresponding preferential trade agreements.

Article 5 For any commodity that is “not completely obtained or produced in member state or region” prescribed in Paragraph 2 of Article 3, its origin shall be determined according to the standards for changing of tariff category, the standards on regional value composition, the standards on manufacturing or processing procedures or other standards.

(1)     The standards for changing of tariff category mean the tariff category of the commodity made or processed from materials which are obtained from non-member states or regions in the member state or region is changed in the Harmonized Commodity Description and Coding System.

(2)     The standards on regional value composition mean the percentage of the price of a commodity after deducting the prices of non-origin materials of the member states or regions in production from the FOB price in the FOB price of the commodity.

(3)     The standards on manufacturing or processing procedures mean the main procedures for the basic features of the commodities after processing.

(4)     Other standards mean the other standards for determining the origin of commodities commonly agreed by the member states or regions except the aforesaid standards.

Article 6 Where any commodity or material with the origin of a member state or region of preferential trade agreements are used for producing any other commodity in any other member state or region of the same preferential trade agreements and become a part of the other commodity, the origin of the commodity or material shall be deemed the other member state or region.

Article 7 The processing, packing, showing and other minor processing or handling of commodities for the convenience of loading, shipment, warehousing and sale shall not affect the determination of the origin of commodities.

Article 8 No packing materials or containers used to protect commodities in shipment may affect the determination of origin.

Article 9 The origin of the materials or articles used in production of a commodity which neither compose the physical component nor become the part of the commodity shall not affect the determination of the origin of the commodity.

Article 10 The “direct shipment” mentioned in Article 3 herein means the imported commodities under the preferential trade agreements are directly shipped to China from the member state or region of the preferential trade agreements without passing any state or region other than the member states or regions of the preferential trade agreements (hereinafter referred to as other states or regions).

The commodities originally produced in the member state or region of the preferential trade agreements, which are shipped to China via other states or regions, no matter whether the means of transport is changed or temporary storage is made in shipment, and satisfy all of the following conditions, they shall be deemed being imported by “direct shipment”:

(1)     Where no treatment other than the treatments necessary for maintaining the commodities in good condition is made when the commodities passing other states or regions;

(2)     Where the length of stay of the commodities in other states or regions does not exceed the term prescribed in corresponding preferential trade agreements; and

(3)     Where the commodities which are temporarily stored in other states or regions are under the administration and supervision of the customs of the states or regions.

Article 11 The organizations having the right to issue the certificate of origin for exported commodities according to provisions of laws and regulations (hereinafter referred to as the issuing organizations) may issue the certificate of origin for exported commodities under the preferential trade agreements.

Article 12 The issuing organizations shall issue the certificate of origin for exported commodities in accordance with provisions herein and the rules on determination of origin prescribed in corresponding preferential trade agreements.

Article 13 The GAC shall conduct supervision and examination on whether the issuing organizations issue the certificate of origin for exported commodities under preferential trade agreements in according with provisions of Article 12 herein.

The issuing organizations shall submit the reports relevant to their issuance of the certificate of origin under preferential trade agreements in accordance with Article 12 herein to the customs on a regular basis.

Article 14 At declaration of import commodities, the consignee of the imported commodities or its/his agent shall fill the Customs Declaration Form of People’s Republic of China for Import of Commodities according to the provisions on declaration of the customs, declare applicable agreed or preferential tariff and submit the following documents at the same time:

(1)     The original of the valid certificate of origin of commodities or the origin declaration documents prescribed by relevant preferential trade agreements; and

(2)     Other commercial documents of the commodities including originals of commercial invoices and shipping documents.

With respect to the commodities shipped to China via other states or regions, certification documents including combined transport bill of lading as prescribed in Paragraph 2 of Article 10 shall be submitted; and for commodities having been stored in other states or regions temporarily, other documents that are able to prove the conformance to Paragraph 2 of Article 10 issued by the customs of the aforesaid states or regions shall be submitted.

Article 15 The certificate of origin submitted by the consignee of the imported commodities or its/his agent to the customs shall simultaneously satisfy all of the following conditions:

(1)    Conformance to the provisions on format of the certificate, contents to be filled, signature and stamp and submission term prescribed in corresponding preferential trade agreements; and

(2)    Conformance to the contents of documents including commercial invoices and customs declaration.

Article 16 Where the consignee of the imported commodities, the declared origin of which is a member state or region of preferential trade agreements, or its/his agent fails to provide the certificate of origin or origin declaration documents according to Article 14, it/he shall make a supplementary declaration on whether the imported commodities have the qualification of origin of the member states or regions of relevant preferential trade agreements to the customs at declaration (see annex for the format).

Article 17 For the consignee of the imported commodities or its/his agent who makes a supplementary declaration according to Article 16 herein, the customs may clear the commodities after collecting equivalent deposit according to agreed or preferential tariff at application of the aforesaid consignee or its/his agent, and handle import procedures and conduct customs statistics according to provisions.

If the customs believes that it is necessary to check the accuracy of the certificate of origin submitted by the consignee of the imported commodities or its/his agent and whether the origin of the commodities is the member states or regions of preferential trade agreements, it shall clear the commodities after collecting a deposit equivalent to tax payable according to the preferential tariff, common tariff or other tariff applicable to the commodities, and handle import procedures and conduct customs statistics according to provisions.

Article 18 At declaration of export commodities, the consignor of the exported commodities shall fill the Customs Declaration Form of People’s Republic of China for Export of Commodities according to the provisions on declaration of the customs, and submit the electronic data of the certificate of origin or the copy of the certificate of origin to the customs.

Article 19 For the purpose of checking the consistence of the origin of the commodities and the certificate of origin and other declaration documents submitted by the consignee or consignor of the imported or exported commodities, the customs may make an inspection on the imported and exported commodities. The specific procedures may be handled according to the relevant provisions of the Administrative Measures of the Customs of the People’s Republic of China for Inspection of Imported and Exported Commodities.

Article 20 For imported or exported commodities under preferential trade agreements with the mark of origin or such mark on their packages, the origin indicated in the mark shall be the same to the origin determined according to these Provisions.

Article 21 The agreed or preferential tariff shall not be applied to the imported commodities in any of the following circumstances:

(1)    Where the consignee of the imported commodities or its/his agent neither provides the certificate of origin or origin declaration document according to provisions nor makes a supplementary declaration on whether the imported commodities have the qualification of origin at declaration of import commodities;

(2)    Where the consignee of the imported commodities or its/his agent provides neither commercial invoices, shipping documents and other commercial documents nor other documents which can prove the conformance to Article 14 herein;

(3)    Where the origin of the commodities is inconsistent with the declared contents after inspection or check, or the accurate origin of the commodities is undeterminable; or

(4)    Other circumstances inconsistent with these Provisions and relevant preferential trade agreements.

Article 22 The customs may, if necessary, request the competent authorities of the export member states or regions to check the origin of the imported commodities under preferential trade agreements.

The customs may also conduct check and inspection on the origin of the commodities according to provisions of relevant preferential trade agreements.

Article 23 The customs may check the origin of the exported commodities under preferential trade agreement to determine their origin, if necessary.

Upon the request of the member states or region of preferential trade agreements, the customs may check the certificate of origin or the origin of the exported commodities, and feed back the check results within the term prescribed in the relevant preferential trade agreements.

Article 24 The consignee or consignor of the imported or exported commodities may, in accordance with the relevant provisions of the Interim Measures of the Customs of the People’s Republic of China for the Administration of Administrative Ruling, apply for administrative ruling on origin with the customs.

Article 25 The GAC may, in accordance with the provisions of relevant laws, administrative regulations and customs rules, make a decision on the origin of imported and exported commodities with general binding force.

Article 26 The customs shall bear the obligation of confidentiality for the business secrets obtained according to these Provisions. The customs is not allowed to reveal such secrets or use such secrets for other purposes without the consent of the consignee or consignor of the imported or exported commodities, except as otherwise prescribed in laws, administrative regulations and relevant judicial interpretation.

Article 27 The consignee or consignor, who violates provisions herein and has any behavior of smuggle or behavior in violation of rules of the customs on supervision or other behavior in violation of the Customs Law, shall be punished according to the relevant provisions of the Customs Law and the Regulations of the People’s Republic of China on Implementation of Customs Administrative Punishment; and if a crime is constituted, the criminal responsibilities may be prosecuted according to law.

Article 28 Definition of the following terms used in these Provisions:

The “production” refers to the means to obtain commodities, including planting, raising, exploitation, harvesting, fishing, cultivation, entrapment, hunting, capture, collection, gathering, breeding, distilling, manufacturing, processing or assembling.

The “non-origin material” refers to the material used in production of commodities, the origin of which is not the member states or regions of preferential trade agreements or is unknown.

Article 29 The specific measures for implementation of agreed or preferential tariff to the commodities changed for domestic sale from customs bonded supervision shall be prescribed separately by the GAC.

Article 30 These Provisions shall be subject to the interpretation by the GAC.

Article 31 These Provisions shall enter into force on March 1, 2009.

Appendix:

Provisions of the Customs of the People’s Republic of China on Administration of
Origin for Preferential Treatment of Imported and Exported Commodities

Declaration of the Origin of the Imported Commodities

I, _________ (name and title), as the consignee of the imported commodities/the agent of the consignee of the imported commodities (cross out the inapplicable), is hereby declare that the commodities listed under the Item__ of the Customs Declaration No.___ is originally produced in _____, and the commodities satisfy the requirements of the Provisions of the Customs of the People’s Republic of China on Administration of Origin for Preferential Treatment of Imported and Exported Commodities and the rules on origin prescribed in relevant preferential trade agreement.

I hereby apply for the application of the agreed tariff/preferential tariff (cross out the inapplicable) under relevant preferential trade agreement to the above-mentioned commodities, and for the clearance of the commodities after paying deposits. I commit that I will submit the certificate of origin of the commodities under the relevant preferential trade agreement within one year upon the date of import.

Signature: _________________

Date:______________________